Steel prices across the globe Including India have significant on rising mode due to spurt in key raw material prices, strong demand and shortage of Semis products globally in the month of August.
Indian Semi-finished prices saw an increase of around INR 1,000-2,000/MT (USD 15-32), long steel by INR 600-1,200/MT (USD 9-19) and the Flat steel by INR 1,200-2,500/MT (USD 19-39). The price changes are on monthly average basis – Aug’17 Vs Jul’17.
Iron Ore: NMDC – the state owned largest iron ore miner kept their offers unaltered and also rake movement was stable by the miner. While, merchant miners in Odisha, India’s largest iron ore producing state, increased their prices by INR 200-500/MT (USD 3-8) in Aug’17.
Pellets: Indian pellet offers increased by INR 300-800/MT (USD 5-13) on monthly basis which was supported by rising exports as well domestic demand.
In the end of Aug’17, JSPL had concluded a deal at USD 111.5/MT, CFR China and also have good number of inquiries at hand. SteelMint research observed that a manufacturer from South India is heard to have floated a tender for the quantity of 50,000 MT and is in the process of finalizing a deal for September shipment between USD 114-115/MT, CFR China.
Coking Coal: The coal offers are continuously increasing since June 2017 owing to short supply and strong demand globally. The offers of premium HCC increased by USD 30-35/MT and are hovering USD 220-222/MT, CNF India. Indian steel makers continue to book shipments in these higher offers.
Sponge Iron & Billet: Domestic billet and sponge offers continue to surge following good demand, short supply and strong export orders. In a month duration, domestic billet offers rose in the range of INR 1,000-1,500/MT (USD 15-24) & Sponge by INR 1,000-2,000/MT (USD 15-32).
Billet export offers have remained on higher side at around USD 10-20/MT. Western India – Gujarat based couple of big manufacturers heard to have booked bulk quantity for South East Asian countries. And the fresh offers by the producers are reported near to USD 520-522/MT FoB.
Meanwhile, SAIL’s 13,500 MT (size 125*125 mm) billet export tender expired on 18 Aug received highest bid at USD 505/MT FoB India. Prior to this, Vizag Steel had also concluded a 20,000 billet export tender in the mid of Aug’17 around USD 480-485/MT.
Scrap: Indian smelters prefer the domestic scrap rather than imported owing to higher offers and they are for wait and watch mode to take position. The domestic scrap offers rise by INR 1,000-2,400/MT (USD 15-38) M-o-M. And in the same duration global offers increase by USD 15-20/MT to USD 320/MT CNF India.
Pig Iron: Indian Pig iron offers skyrocketed for domestic & exports as well due to sharp surge in global coking coal and scrap offers. The domestic offers increase by INR 2,500/MT (USD 39) and export offers surge by USD 23-25/MT to USD 360/MT FoB India.
Neelachal Ispat (NINL), India’s largest and state owned steel grade pig iron manufacturer had increased its offers twice on 03rd Aug by INR 3,000/MT (USD 47) and on 18th Aug by INR 1,000-1,250/MT to INR 24,000-24,250/MT.
Long Steel: With spurt in Semis offers, domestic rebar & structure offers also increase by INR 600-1,200/MT (USD 9-19 ). Major price rise reported in Mumbai – West India for both products in the range of INR 1,000-1,200/MT.
India generally does not export re-bar in large quantities but trend has been changing since June as billet prices started increasing in global market. The bar and rod exports in Jul’17 stood around 0.18 MnT. The last deal heard to have concluded at around USD 510-515/MT for 20,000 MT by a privately owned large producer.
Flat Steel: Indian Flat steel market have gained momentum due couple of reasons that is significant hike in global offers led to strong exports and rising input cost with the manufacturers.
On M-o-M in Aug’ 17, Domestic flat steel prices surged by INR 1,200-2,500/MT. Apart this, HRC export offers have also recorded the significant growth of USD 65/MT and are hovering in range of USD 590/MT FoB.
Monthly Average Prices – Aug’17 Vs Jul’17
| Products | Markets | Prices in INR/MT | M-o-M (%) | |
| Aug’17 | Jul’17 | |||
| Pellet Fe 63%, 6-20 mm | Ex-Barbil | 4,555 | 4,040 | 12.75 |
| Iron ore Fe 62%, 5-18 mm | Joda loaded to wagon | 3,725 | 3,500 | 6.43 |
| Coking Coal, Premium HCC | CNF India* | 205 | 173 | 18.41 |
| Scrap HMS (80:20) | Ex-Mumbai | 21,050 | 19,950 | 5.51 |
| C-DRI 80 FeM | Ex-Raipur | 18,750 | 16,800 | 11.61 |
| P-DRI 80 FeM | Ex-Raipur | 17,550 | 15,400 | 13.96 |
| Pig iron Steel grade | Ex-Raipur | 24,700 | 22,250 | 11.01 |
| Billet 125*125 MM | Ex-Mumbai | 28,200 | 26,850 | 5.03 |
| Rebar (12mm) | Ex-Mumbai( Medium Scale) | 31,600 | 30,450 | 3.78 |
| Wire Rod (5.5 mm) | Ex-Raipur | 32,250 | 30,500 | 5.74 |
| Structure ( 40 Angle) | Ex-Mumbai | 32,500 | 31,300 | 3.83 |
| HRC (2.5-8 mm) | Ex-Mumbai | 38,100 | 36,200 | 5.25 |
| CRC(0.90mm) | Ex-Mumbai | 42,700 | 40,260 | 6.06 |
| HR Plate(5-10mm) | Ex-Mumbai | 37,590 | 36,270 | 3.64 |
Prices are Ex-works, Exclusive of GST at 18%
Indian Export Reference Prices
| Commodity | Size and Grade | Prices | 1W | 1M |
| Pellet | Fe 64% | 104 | 98 | 94 |
| Billet | 150*150 mm | 510 | 500 | 455 |
| Pig Iron | Steel Grade | 360 | 357 | 335 |
| HRC | 2.5-8mm, IS 2062 | 590 | 575 | 525 |
Prices in USD/MT
Source: SteelMint Research
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